The contribution of income mobility to economic insecurity in the US and Spain during the Great Recession

Olga Cantó and David O. Ruiz
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David O. Ruiz: Departamento de Economia, Facultad de Ciencias Sociales y Economicas, Universidad del Valle, Ciudad Universitaria Meléndez, Colombia

No 345, Working Papers from ECINEQ, Society for the Study of Economic Inequality

Abstract: Recent evidence on the impact of the crisis on developed countries shows that the changes in income inequality and poverty have been relatively small in spite of the macroeconomic heterogeneity of the recession across different economies. However, when evaluating the main changes in individual perceptions linked to the crisis not only increases in inequality or poverty matter, also changes in individually-perceived chances to scale up or lose ground in the income ladder are crucial. Our aim is to analyze to what extent the recession may have had an impact on economic insecurity perceptions by increasing income losses in two developed countries where job losses have been large. The contribution of income losses to insecurity is approximated by the prevalence of downward income mobility. We identify the main socioeconomic characteristics of those most likely to suffer from a large income loss. In general, age, education and the presence of children in the household are key determinants of this event in both countries.

Keywords: Mobility; economic insecurity; income volatility; recession; US; Spain. (search for similar items in EconPapers)
JEL-codes: D31 D63 I14 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2014-10
New Economics Papers: this item is included in nep-ltv
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Citations: View citations in EconPapers (1)

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Related works:
Chapter: The Contribution of Income Mobility to Economic Insecurity in the US and Spain during the Great Recession (2015)
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